legal & business environment mb104 · web viewrse outcomes: students will get acquainted with...

Legal & Business Environment MB104

Institute of Engineering & Management

Department of ManagementWorkbook

(Legal and Business Environment)

Paper Name with code:

Name of the Student:Year: Section:Class Roll No.:University Roll No.:

1 | P a g e Study Material, IEM, MBA / PGDM Department


1. MAKAUT Syllabus

Legal and Business Environment: Code: MB104Contacts: 40L

Credits: 4Pre-requisites: Good command over English as a language and forming habit of reading long text files. Should read the bare acts passed by the legislature for a better grasp on the subject.

Detailed Syllabus is available at :http://www.professorpk.com/business-law-mba/And also at :http://www.wbut.ac.in/syllabus/MBA%20Syllabus-8.1.2019.pdfThis is the syllabus that was revised in 2018.

2. Recommended Books:Sen & Mitra: Commercial law; World PressN D Kapoor : Business Laws or Elements of Mercantile Law ; SC Chand & Co.

3. Course Outcomes: Students will get acquainted with basis legal environment in which a corporate operate and understand the rules of formation of business entities, as well as legal impacts of various documents. They shall also learn about Intellectual Property Rights and certain economic parameters relevant for the economy and business entities. Broad emphasis will be for the following areas

Global exposure and cross-cultural understanding Business Ethics and Social Responsibility Business Environment and Domain Knowledge Effective communication

4. Day wise Lesson Plan with book reference: Note : Most of the bare acts required can be downloaded from the website of www.professorpk.com

Sl. No

Day Module Topic Recommended books for the topic / website

1. 1 Legal Aspects of Business

Society, State and Law, Enforceability of Law,

Mercantile Law

ND Kapoor

2. 2 Legal Aspects of Business

Indian Legal System www.professorpk.com

3 3 Legal Aspects of Business

Legal English www.professorpk.com


http://www.professorpk.com/



http://www.wbut.ac.in/syllabus/MBA%20Syllabus-8.1.2019.pdf

http://www.professorpk.com/business-law-mba/


4 4 Indian Contract Act, 1872

Contract defined, Elements of valid contract, Classification of contracts,

Offer and acceptance,

ND Kapoor, Sen & MitraBare Act for Indian

Contract Act

5 5 -do- Consideration -do-6 6 -do- Capacity to contracts -do-7 7 -do- Free consent -do-8 8 -do- Legality of object and

consideration, Illegal agreements

-do-

9 9 do- Termination of contracts, Breach of contract

-do-

10 10 Written Test On topics covered between lectures 1 and

9

www.professorpk.com

11 11 Indian Contract Act, 1872

Indemnity and guarantee, Laws of agency

Sen & Mitra, ND Kapoor

12 12 Sale of Goods Act, 1930

Classification of goods, Conditions & Warranties,

Passing of ownership rights

Sen & Mitra, ND KapoorBare Act for Sale of

Goods Act

13 13 -do- Rights of an unpaid seller, Remedies for breach of

Contract of Sale of Goods.

-do-

14 14 Negotiable Instruments Act, 1881

Definition and characteristics of different

types of negotiable instruments, Parties to a

negotiable instrument and their capacity

Sen & Mitra, ND KapoorBare Act for Negotiable

Instrument Act

15 15 do- Dishonour of cheques, Discharge from Liability,

Crossing of cheques, Bank drafts and Banker’s

cheques

-do-

16 16 do- Holder in due course, Criminal Law provision of

the N.I. Act

-do-

17 17 Companies Act, 1956

The law has changed in 2013, but the syllabus

has notNature and kinds of

companies, Formation, Memorandum, Articles

Sen & Mitra, ND KapoorBare Act for Companies

Act 1956 and 2013

18 18 -do- Prospectus -do-19 19 -do- Capital – shares,

debentures, borrowing powers, minimum

subscription

-do-

20 20 Written Test On topics covered www.professorpk.com





between lectures 11& 1921 21 Companies Act,

1956Appointment of Directors;

Powers of DirectorsSen & Mitra, ND Kapoor

22 22 -do- Winding up of companies (Including Amendments)

-do-

23 23 Consumer Protection Act, 1986

Salient features and objectives of the

Consumer Protection Act, 1986, Different Consumer

redressal Forums, Composition and

jurisdiction of district, state and National forum

Sen & Mitra, ND KapoorBare Act for Consumer

Protection Act

24 24 -do- Mode of complaints, Procedures for disposal of

complaints, Penalty.

-do-

25 25 Intellectual Property Right

Trademarks (Trademark Act, 1999), Copyright (Copyright Act, 1957),

Geographical Indications (Registration &

Protection) Act, 1999

-do-Indian Bare Acts for

Patent, Trade Mark and Copyright

26 26 -do- Laws relating to Patents (Patent Act, 1970)

-do-

27 27 Intellectual Property Right

(WTO guideline)

Changes India had to make to be WTO

complaint

Website of WTO

28 28 -do- Reemergence of Protectionism and Future of WTO. India’s strategy

www.professorpk.com

29 29 -do- -do-30 30 Written Test On topics covered

between lectures 21 and 29

www.professorpk.com

31 31 Economic Indicators

Consumer Price Index, Interest Rate, Inflation Rate and its impact on

Business

www.professorpk.com

website of Center for Monitoring Indian

Economy

32 32 -do- Business Risks Class discussion33 33 Legislation for

Anti competitive and Unfair

Trade Practice

Objectives of MRTP Act, 1969, Objectives of

Competition Act, 2002

Bare Acts of MRTP Act and Competition Act

34 34 -do- Anti competitive Agreement

-do-

35 35 -do MRTP vs Competition Act -do-






36 36 Revision & Remedial Classes

Contract Act and Sale of Goods Act

37 37 -Do- Companies Act As given earlier38 38 -Do- Companies Act As given earlier39 39 -Do- Intellectual Properties As given earlier40 40 -Do- Consumers’ Rights As given earlier

5. Course InformationPROGRAMME: MBA DEGREE: MBA

COURSE:

Legal and Business Environment

SEMESTER: 1 CREDITS: 4

COURSECODE: MB 104. COURSE TYPE: Theory

CONTACT HOURS: 40 CORRESPONDING LAB COURSE CODE (IF ANY): N/A



DAY 1Course: Legal and Business Environment

Legal Aspects of Business

Society, State and Law, Enforceability of Law,

Mercantile Law

Course Outcomes : As given in the preamble portion

Lecture 1 (60 minutes)Topics Covered : Society, State and Law, Enforceability of Law, Mercantile Law

Have you ?

Read the relevant chapter at N D Kapoor

Visited the following link athttp://www.professorpk.com/society-and-law/

Objectives: Learn about the interplay of society, state, business and law

Notes

Let’s learn by doing:

1. Which is bigger: nation, state, society or religion in its scope?2. Who creates law, parliament, government or supreme court?3. Is there a thin line between violating the law and bending the law?


This topic is being covered as part of general awareness.

http://www.professorpk.com/society-and-law/




Indian Legal System

Course Outcomes : As given in the preamble area

Lecture 2 (60 minutes)Topics Covered: Indian Legal System

Have you ?

Visited my article athttp://www.professorpk.com/indian-legal-system-an-overview/

Objectives: This is not in the syllabus. But a broad knowledge about the Indian Legal

system is required to understand business law.

Notes


4. Which articles of Indian constitution protects the fundamental rights of the citizens of India?

5. Which court will a business generally approach if it has to appeal against an order of

6. How are the judges of Supreme Court appointed?


The article quoted is self-explanatory.

http://www.professorpk.com/indian-legal-system-an-overview/




Legal English


Lecture 3 (60 minutes)Topics Covered: Indian Legal SystemHave you ?

Visited my article athttp://www.professorpk.com/indian-legal-system-an-overview/

Objectives: This is not in the syllabus. But a broad knowledge about the Indian Legal

system is required to understand business law.

Notes


7. USA is following which legal system?8. Saudi Arabia is following which legal system?9. What legal system is Pakistan following?


There are three legal systems in the world. India is following one of them, which we inherited from the UK. There is a need to understand the legal system in which we are operating.

http://www.professorpk.com/indian-legal-system-an-overview/



Indian Contract Act, 1872

Contract defined, Elements of valid contract, Classification of contracts,

Offer and acceptance,


Lecture 4 (60 minutes)

Have you ? Read the relevant chapter

at N D Kapoor or Sen & Mitra Visited relevant page at ?


Objectives:


10. What makes an offer into an enforceable contract?11. How can acceptance of offer be communicated?


This is an introduction to the basic concepts of contracts. Please note specifically about the verbal or oral contracts?




Contract Act Consideration


Lecture 5 (60 minutes)Topics Covered: Consideration

Have you ?




Objectives: To acquaint yourself about ‘consideration” as known under the contract

act.


12. Is past consideration a good consideration? 13. Can abstinence be a consideration? 14. Is gift a consideration?


Definition of consideration is provided under section 2 of the contract act




Contract Act Capacity to Contract


Lecture 6 (60 minutes)Topics Covered: Capacity to Contract




Objectives: Objective is to find out where capacity to contract is lost.


15. Is a minor competent to contract?16. Is Minority determined by nationality or domicile?17. Is a person serving his sentence in jail competent to contract?


A contract entered into by an unqualified person cannot be enforced.




Contract Act Free Consent


Lecture 7 (60 minutes)Topics Covered: Free Consent under Contract Act




Objectives: Is to find out why free consent is lost and the consequence thereof.


18. What is the difference between misrepresentation and fraud? 19. Contract becomes void or voidable without free consent?20. What is “ignorantia juris non excusat”?


A contract is not complete unless the consent of all the parties to it are free.




Contract Act Legality of object and consideration, Illegal

agreements


Lecture 8 (60 minutes)Topics Covered: Legality of agreements




Objectives: Is to find out which agreements are illegal


21. Is an agreement of wager a valid agreement? 22. Can an agreement which originally had a valid object be illegal later on? 23. Is an agreement in restraint of trade valid?


If the objects or consideration is unlawful, the agreement becomes void.




Contract Act Termination of Contract and Breach of Contract


Lecture 9 (60 minutes)Topics Covered: Given above




Objectives: To understand how a contract is breached?

Notes


24. What is specific performance?25. In which case specific performance be not enforced?26. What is the difference between punitive and vindictive damages?

DAY 10


After the breach of a contract several remedies are available, here we discuss that also.



Course: Legal and Business Environment

Contract Act Revision and Test


Lecture 10 (60 minutes)Topics Covered: Revision and Test

Come mentally prepared to give a written test. Three questions will be asked, You have

to complete the to the point answer in 4 pages.

DAY 1115 | P a g e Study Material, IEM, MBA / PGDM Department



Contract Act Indemnity, guarantee, agency


Lecture 11 (60 minutes)Topics Covered: As above




Objectives: To understand about agreements with three parties like guarantee and

agency.


27. Is consideration required for an agency? 28. Can a guarantor pay on behalf of principal debtor and then recover the money from

the principal debtor ?29. What is the difference between Guarantee and Indemnity?

DAY 12





Sale of Goods Act

Classification of goods, Conditions & Warranties,

Passing of ownership rights






Objectives: Preliminary ideas about goods as under Sale of Goods Act..


30. What is a future goods?31. Can there be contingent goods?32. Is standing crops in the field a good?33. Is a building a good?

DAY 13Course: Legal and Business Environment17 | P a g e Study Material, IEM, MBA / PGDM Department



Sale of Goods Act

Rights of an unpaid seller, Remedies for breach of

Contract of Sale of Goods.






Objectives: To understand the rights of unpaid sellers

Notes

We shall cover the various rights of an unpaid seller, mainly lien, stoppage in transit and resale


34. Define an unpaid seller35. What is seller’s lien? 36. What is the relationship between stoppage in transit and insolvency of buyer?


Negotiable Definition and 18 | P a g e Study Material, IEM, MBA / PGDM Department



Instruments Act

characteristics of different types of negotiable

instruments, Parties to a negotiable instrument and

their capacity






Objectives: Understand about cheque, bills of exchange and promissory notes


37. Is Railway receipt a negotiable instrument? 38. What is a Bank Draft ? 39. Is currency note a negotiable instrument?


Negotiable Instruments

Dishonour of cheques, Discharge from Liability,




Act Crossing of cheques, Bank drafts and Banker’s

cheques






Objectives:. Understand about rights and liabilities attached to different types of

instruments


40. What is days of grace? 41. What is noting ?42. What is notice of dishonor?


Negotiable Instruments

Act

Holder in due course, Criminal Law provision of

the N.I. Act









Objectives:. To understand about the special position of holder in due course?


43. How is holder in due course different from other holders? 44. What are the criminal liabilities for dishonor of a cheque ?


Companies Act Nature and kinds of companies, Formation, Memorandum, Articles









Objectives: To understand the special characteristics of companies as artificial juridicial

entity


45. Do shareholders own the assets of the company? 46. Why is a company safer for entrepreneurs?47. What is an LLP?


Companies Act Prospectus


Look at Salomon Vs Salomon as a base case.




Lecture 18 (60 minutes)Topics Covered: As aboveHave you ?

Read the relevant chapter at N D Kapoor or Sen & Mitra

Visited relevant page at ?http://www.professorpk.com/

Objectives: To understand methods of raising of capital by a company.

Notes


48. Who owns a company?49. Who manages a Company?50. Can shareholders examine the books of accounts of a company? 51. When is a statement in lieu of prospectus issued?


Companies Act Capital – shares,


Understand clearly the difference between prospectus and statement in lieu of prospectus



debentures, borrowing powers, minimum

subscription



Objectives: To understand equity and loan financing for a company.

Notes





52. What are the restrictions on borrowing powers of a company?53. What is the importance of minimum subscription? 54. What are the consequences of misstatement in a prospectus?


Written Test Sale of Goods, NI and Companies Act


Preference and Equity capital, Differential Dividend rights etc. must be understood clearly.








Objectives: To understand absorption of past lessons.


There will be written questions in the examination


Companies Act Appointment and Powers of Directors









Objectives: To understand methods of appointments of Directors and analyse their powers

and responsibilities. .

Notes


55. Is the Director an employee or a trustee? 56. What is the difference between an MD and a director? 57. What are the seven methods of appointment of directors?


Companies Act Winding up of Companies


Updated case laws can be discussed in the class.




Lecture 22 (60 minutes)Topics Covered: As aboveHave you ?



Objectives: To understand the process of winding up of a company.


58. What is Insolvency and Bankruptcy code? 59. How winding up power has shifted to NCLT? 60. What are the consequences of winding up on the shareholders of different types?


Consumer Protection Act

Consumer Protection Act, 1986, Different Consumer

redressal Forums, 27 | P a g e Study Material, IEM, MBA / PGDM Department

Winding up powers have shifted to NCLT. Voluntary winding up still remains.



Composition and jurisdiction of district,

state and National forum


Lecture 23 (60 minutes) Topics Covered: As above




Objectives: Have a general understanding of the Consumer Protection Act

Notes


61. Who is a consumer?62. What are his rights? 63. Examine the three redressal forums available64. Examine the jurisdiction of each of the forums.


Consumer Protection Act

Mode of complaints, Procedures for disposal of

complaints, Penalty.


Govt. of West Bengal is very active in this area, at least through advertisements etc.




Lecture 24 (60 minutes)Topics Covered: As above Have you ?



Objectives: Understanding about Consumer complaints


65. What are the consequences of non complying with a consumer forum order?66. What are the various modes of complaints in consumer forum?


Intellectual Property Rights

(IPR)

Trademarks (Trademark Act, 1999), Copyright (Copyright Act, 1957),


Get acquainted with the various forms that might have to be filled in.



Geographical Indications (Registration &

Protection) Act, 1999






Objectives: To underrstand generally about IPRs/.

Notes


67. Is Darjeeling Tea a geographical indicator?68. Differentiate between Product Patent and Design Patent.69. Does copyright require mandatory registration?



Must understand in the light of WIPO, TRTPS etc.



IPR Laws relating to Patents (Patent Act, 1970






Objectives: Basic awareness about patents.

Notes


70. Differentiate between process patent and product patent regime71. What are the essential elements of patentability of an invention?72. Can a pure scientific theory be patented?


IPR & WTO Changes India had to make to be WTO


In view of India’s signing TRIPS patent act has undergone several changes, whicj you must get be acquainted with.



complaint






Objectives: To understand the 10 major changes that India had on joining WTO?


73. What are the top 10 changes India had to make in compliance with WTO?74. Will WTO survive in view of the contempt it is recently getting from the USA?


IPR in the field of

Rights of authors and educational film makers


There are a few relevant articles in www.professorpk.com



Education ( not in

syllabus)

Concurrent rights with employers

Invention ring-fencing






Objectives: To understand the role of IPR in the educational field.


75. You took the picture of yob: ur friend which became viral on posting in facebook? Who owns the copyright? You or friend?

76. Can applicant and inventor be different in a patent application?77. Your book was published in a journal. Who owns the copyright ? You or the

journal?


WTO and IPR Re-emergence of protectionism, likely


Reuter’s report and many recent developments in USA and EU will be discussed



safeguards and strategy


Lecture 29 (60 minutes)Topics Covered: as above




Objectives: This is not in the syllabus. Based on recent development in the USA

Notes


78. What is Thucydides trap?79. What is the WTO disputes about?80. How has China benefitted from WTO?


Written Test Consumer Protection Act and IPR

Course Outcomes : As given in the preamble area34 | P a g e Study Material, IEM, MBA / PGDM Department

Based on my published article



Lecture 30 (60 minutes)Topics Covered: As stated above

Have you ? Read the relevant chapters

at N D Kapoor or Sen & Mitra Visited relevant pages at ?


Objectives: Tests to conduct absorption of imparted knowledge.


Economic Consumer Price Index,




indicators Interest Rate, Inflation Rate and its impact on

Business


Lecture 31 (60 minutes)Topics Covered: Indian Legal System


Visited the website of Center for Monitoring Indian Economy

Objectives: Understand basic economic data


81. What is the relationship between price index and inflation? 82. What is the relationship between inflation and interest rate?


Economic Indicators

Business Risks






Visited relevant page at ?http://www.professorpk.com/wp-content/uploads/2017/10/Business-Environment-Business-Risks.pdf

Objectives:


83. Name and explain at least 5 business risks. 84. How can political risks be covered?


Legislation for Anti-

competitive Activity

Objectives of earlier and latest legal framework


To have a general understanding of the business risks.

http://www.professorpk.com/wp-content/uploads/2017/10/Business-Environment-Business-Risks.pdf

http://www.professorpk.com/wp-content/uploads/2017/10/Business-Environment-Business-Risks.pdf







Objectives: To understand the new anti-monopoly framework


85. Is it correct that the new anti-monoploy framework is more business friendly? 86. How to file a complaint to competition commission?87. What are the powers of competition commission?




competitive Activity

Anticompetitive Agreements




Lecture 34 (60 minutes)Topics Covered ; As aboveHave you ?



Objectives: Same as previous class


88. Draw comparison between MRTP and competition Act89. Is the new act more in line with worldwide development?



competitive

MRTP vis-à-vis Competition Act




Activity





http://www.professorpk.com/ Have you visited the website of Competition Commission ?

Objectives: Same as last class


90. Study 3 Competition Commission case and prepare a report

DAY 36 to 40 Course: Legal and Business Environment

Revisions All the Acts



The article quoted is self-explanatory.



Revisions will be based on outstanding questions from the students. These will be mainly sessions for clarification


legal & business environment mb104 · web viewrse outcomes: students will get acquainted with...

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